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It's at the Winnipeg Convention Centre. The public can attend free on Saturday.
San has a booth in the Trade Show...
http://www.manitoba.ca/iem/mrd/minerals/convention/exhibitsroom_exhibitors.html
Convention home page...
Here is the summary from the four page SGR report that was published by TD Waterhouse this morning:
Pre-market yesterday, San Gold reported Q2/11 preliminary operating results.
Impact – POSITIVE
The company reported gold production of 20,055 oz, in line with our forecast of 20,121 oz and well above its Q1/11 output of 14,688 oz. Operating costs will be disclosed along with financial results on August 15, but the company suggested that cash costs are expected to come in below full-year guidance of $825/oz. We currently forecast Q2/11 cash costs of $759/oz.
We believe the company is on track to beat its 2011 production guidance of 80,000 oz based on our expectation that throughput continues to ramp up over the balance of the year. We understand that in the last two weeks of June the mill has operated at a production rate of approximately 1,500 tpd, well ahead of the company’s target 2011 exit rate of 1,400 tpd. We have reviewed our mine plan assumptions, which were based on the company’s October 2010 resource estimate of 2.6mm oz at an average grade of 10.3 g/t in all categories. Since then, the company has completed a great deal of drilling and has shifted toward mechanized cut and fill mining from a more selective shrinkage method previously.
To reflect this, we are revising our model to include a larger mineable resource of 2.6mm oz (1.6mm oz previously) at a lower grade of 7.4 g/t (9.2 g/t previously). With this and other minor changes, our corporate NAV5% increases to $2.69/share (from $1.94) and our target price to $4/share (from $3). We maintain our BUY recommendation.
Just a reminder... The ECU annual meeting is on Thursday at 4:00 pm in Montreal.
I suspect the Q&A will be interesting, to say the least.
One thing strikes me as a bit weird... Friday is a holiday here in Canada. (July 1 is Canada Day). So they scheduled the AGM for late afternoon, just before the start of a three day long weekend. I suspect many shareholders will be half way to the lake by that time.
"...One thing I like about AUMN is one can play options..."
True, that's a surprise. Looks like the volume on the options is quite low, the open interest is anemic, and the bid/ask spread is quite large. But that will probably all improve to some extent with the merged company.
TD Waterhouse published a three page report on ECU this morning. They are maintaining their HOLD recommendation, and keeping the target at $1.50. Here is how they summarize their report:
"We view the transaction positively as we believe the contribution of Golden Minerals’ mine building expertise and the greater financial capacity of the combined company provides ECU shareholders with a credible path to benefit from the development of a large scale underground mine at Velardena, e.g. one with production on the order of 5 million oz of silver, 100,000 oz of gold, and 25 million lbs or so of lead and zinc annually, as suggested on the conference call. This, we believe, is exposure ECU shareholders evidently did not have as an independent company which, for several years, has been unable to meaningfully advance the project toward this goal in our view.
However, without additional details on the development plans for Velardena and El Quevar (Golden Minerals’ flagship asset), it is difficult for us to be constructive on the name at this time. As a result, we make no changes to our estimates and maintain our HOLD recommendation."
Warrants normally don't entitle the holder to vote on company matters, but they do get to vote on the merger. From the presentation, here are the three votes needed to pass:
- Approval from >50% of Golden Minerals shareholders
- Approval from >66⅔ % of ECU shareholders
- Approval from > 66⅔ % of ECU shareholders, option holders, warrant holders and noteholder, voting together as a single class